Gold Breaks Through $2,000!
As gold smashes through its long-awaited $2,000.00 per troy ounce threshold, it’s interesting to consider where it will go next. Is the yellow precious metal just on the beginning of a big bull run?
Gold Vs The Dollar
Several industry insiders had made strong claims that gold would top the $2,000 mark as government policies in light of the COVID-19 crisis threaten to devalue global currencies. The US in particular, with an already loose monetary policy, has made further assurances that it will help its suffering economy with even more monetary stimulus. What makes the US so different is the dollar’s status as the world’s reserve currency. This status alongside the global uncertainty of economic recovery means that those nations holding dollars will see less value in keeping them as more and more enter the market.
The “safe haven” of gold has seen incredible gains over recent months due to the Fed’s approach and as more countries face an upturn in new COVID cases after months in lockdown, in all likelihood, gold may follow this lead.
What's Next For Gold?
It is not easy to ascertain the short-term trajectory of the gold price so it might not be as smooth as some predict. Currently, gold is priced at $2,035.00 (£1,554.67) per troy ounce, as of 4:30pm today (10/8/20).
With any peak, there is never a dip too far away, so while there may be some turbulence in the short term, long term predictions seem to be mostly positive, with the more conservative estimates around the $2,300 mark and the more extreme predictions from the Bank of America of a $3,000 price in the coming year if things continue to deteriorate.
Either way, for many gold holders, this achievement will come as welcome news, as will any further gains.
You may be interested in reading through our market news section on our website.